However, there are specific targets Tesla needs to achieve for CEO Elon Musk to get the pay package|Steve Jurvetson|CC BY 2.0
Tesla’s board has proposed a new compensation package for CEO Elon Musk that could be worth as much as $1 trillion in stock over the next decade.
He would also get an additional 12% stake in the company, increasing his ownership in the company to 29%.
However, there are specific targets Tesla needs to achieve for Musk to get the package.
Tesla’s value must reach $8.5 trillion—nearly eight times its current value.
Its adjusted profit should range between $50 billion and $400 billion.
Deliver 20 million cars, deploy 1 million robotaxis, and achieve 10 million Full Self Driving subscriptions. For reference, Tesla sold 1.8 million vehicles in 2024.
While the stellar payout is contingent upon these performance milestones, it reflects how far the company is willing to go to keep its billionaire CEO focused on work. In fact, Tesla Chair Robyn Denholm told investors that “Retaining and incentivizing Elon is fundamental to Tesla…becoming the most valuable company in history.”
Shareholders will vote on November 6. If approved, Tesla could report Musk’s 2025 compensation at $114 billion, making it the largest executive pay package in history, according to analysts.
The move may also trigger legal backlash. Musk is already appealing a Delaware judge’s rejection of his $56 billion Tesla pay package from 2018. The judge said it was improperly granted and not in the best interest of the shareholders.